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Tsy futures trading modestly higher....>

US TSY FLOWS
US TSY FLOWS: Tsy futures trading modestly higher vs. weaker US$, off early
London session highs. Delayed safe haven bid on Palestinian "3 days of rage"
across West bank annc late Tue on US Pres Trump looking to recognize Jerusalem
as Isreali capital -- lead to State dept issuing travel warnings in region.
Decent volume (TYH>440k), yld curves marginally steeper after Tue's drop to new
10+ year lows (2s10s +.184, 53.030; 5s30s +.695, 59.398). Equities little weaker
(emini -3.0, 2625.0), gold steady (XAU 1265.94), oil weaker (WTI -0.72, 56.90). 
- Asia, Tsys opened/held steady/mildly mixed for first few hours of trade,
gradually bid as US$ slipped in lead-up to London hours. Flow included macro
acct buying in belly to long end w/Japanese insurance portfolios in 10s and 30s.
- London, Tsy steady bid w/Bunds and Gilts, off highs on German 10Y R/O
- Swaps, spds running steady/mixed, spd curve mildly flatter
- Eurodollar futures, trading firmer, at/near overnight highs moderate volume.
Pace of LIBOR rise slowed, 1M +0.0037 to 1.4069% (+0.0275/wk), 3M +0.0073 to
1.5226% (+0.0280/wk).

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